Missouri Poised to Eliminate Capital Gains Tax on Digital and Traditional Assets
May 11, 2025 – By Mehab Qureshi
In a groundbreaking move that could reshape the landscape of investment incentives in the United States, Missouri is on the verge of becoming the first state to completely eliminate capital gains tax. The proposed legislation, House Bill 594, has received final approval in the state legislature and now awaits the signature of Governor Mike Kehoe.
Implications for Investors
Should Governor Kehoe sign the bill, Missouri would offer a complete income tax deduction on capital gains, dramatically impacting investors in various asset classes, including cryptocurrencies such as Bitcoin and XRP, as well as traditional stocks and real estate. This legislation could transform Missouri into the most tax-friendly state for investors, making it an attractive destination for both individual and institutional investors.
As of the time of reporting, Bitcoin is trading above $104,000, while XRP is holding steady at $2.38, both witnessing a surge in the past 24 hours as the market reacts to the potential legislative change.
Legislative Background
The impetus for House Bill 594 comes on the heels of broader discussions around tax reform at the federal level, where former President Donald Trump recently proposed a sweeping plan aimed at eliminating income tax in favor of revenue from import tariffs. This proposal has sparked debates about the future of tax policy in the United States, further emphasizing the significance of Missouri’s potential legislation.
Currently, Missouri applies a progressive income tax rate to capital gains, taxing profits from the sale of assets at rates ranging from 0% to 4.7%. For instance, an individual realizing $350,000 in capital gains would typically find themselves in the highest tax bracket, facing a state tax obligation of approximately $16,273.55. ## Awaiting Official Confirmation
While the legislation has strong momentum, attention remains focused on Governor Mike Kehoe, who has yet to publicly declare his intentions regarding the bill. His signature would be the final step required for Missouri to enact this significant tax reform.
If implemented, the elimination of capital gains tax could not only stimulate local investment but also attract out-of-state investors looking for more favorable tax conditions. As discussions surrounding tax legislation continue to evolve, investors across the spectrum will be watching closely to see if Missouri takes this historic step.
As the financial landscape shifts, the implications from Missouri’s decision could resonate far beyond its borders, signaling a potential shift in how states approach taxation of investment gains in the future.
Stay tuned for updates as we monitor Governor Kehoe’s decision on this pivotal legislation.
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